MAUMEE,
Ohio, Aug. 1, 2023 /PRNewswire/ --
The Andersons, Inc. (Nasdaq: ANDE) announces financial results
for the second quarter ended June 30,
2023.
Second Quarter Highlights:
- Company reported net income attributable to The Andersons of
$55 million, or $1.61 per diluted share and adjusted net income
of $52 million, or $1.52 per diluted share
- Adjusted EBITDA was $144
million for the quarter
- Renewables reported pretax income of $67 million and adjusted pretax income
attributable to The Andersons of $32
million on strong crush margins
- Nutrient & Industrial reported pretax income of
$43 million on increased volume on
delayed planting season
- Trade reported pretax income of $5
million and adjusted pretax income of $7 million
"Ethanol margins in the Renewables business and increased volume
in our Nutrient & Industrial business led the way for the
quarter. This was a significant improvement for Nutrient &
Industrial after a softer first quarter. While we expected that
some of the typical first quarter nutrient sales volume would shift
into the second quarter, we are pleased with the extent of the
recovery. In our Trade segment, we had some very strong
merchandising results but, as expected, did not repeat the outsized
second quarter 2022 performance due to good execution following the
Russian invasion of Ukraine," said
President and CEO Pat Bowe. "With
the strong first quarter in Trade which likely pulled some sales
forward, our year-to-date results remain ahead of last year in this
business. Geopolitical concerns continue to bring price volatility
which is typically beneficial to us."
"We remain focused on executing within our stated strategy in
our core grain and fertilizer verticals. We recently closed on the
acquisition of ACJ International, a pet food ingredient supplier
that fits well within our strategy for growth in the premium pet
food ingredient industry," continued Bowe. "We continue to explore
opportunities for growth in the merchandising of renewable diesel
feedstocks, while maintaining our strong position in renewable
fuels production along with potential carbon-reduction
opportunities."
$ in millions,
except per share
amounts
|
|
|
|
|
Q2
2023
|
Q2
2022
|
Variance
|
YTD
2023
|
YTD
2022
|
Variance
|
Pretax Income from
Continuing Operations
|
$
104.4
|
$
118.2
|
$
(13.8)
|
$
39.4
|
$
128.8
|
$
(89.4)
|
Pretax Income from
Continuing Operations
Attributable to the Company1
|
76.8
|
96.3
|
(19.5)
|
56.1
|
106.5
|
(50.4)
|
Adjusted Pretax
Income (Loss) from
Continuing Operations Attributable to the
Company1
|
72.5
|
97.0
|
(24.5)
|
80.6
|
107.2
|
(26.6)
|
Trade1
|
7.2
|
24.4
|
(17.2)
|
30.9
|
28.0
|
2.9
|
Renewables1
|
32.4
|
45.9
|
(13.5)
|
38.7
|
51.4
|
(12.7)
|
Nutrient &
Industrial
|
42.6
|
38.3
|
4.3
|
32.1
|
49.1
|
(17.0)
|
Other
|
(9.7)
|
(11.6)
|
1.9
|
(21.2)
|
(21.4)
|
0.2
|
Net Income from
Continuing Operations
Attributable to the Company
|
55.0
|
80.5
|
(25.5)
|
40.3
|
86.6
|
(46.3)
|
Adjusted Net Income
from Continuing
Operations Attributable to the Company1
|
51.8
|
82.2
|
(30.4)
|
58.6
|
88.2
|
(29.6)
|
Diluted Earnings Per
Share from Continuing
Operations (EPS)
|
1.61
|
2.34
|
(0.73)
|
1.18
|
2.52
|
(1.34)
|
Adjusted Diluted
Earnings Per Share from
Continuing Operations1
|
1.52
|
2.39
|
(0.87)
|
1.72
|
2.57
|
(0.85)
|
EBITDA from
Continuing Operations1
|
148.7
|
168.6
|
(19.9)
|
132.6
|
224.5
|
(91.9)
|
Adjusted EBITDA from
Continuing
Operations1
|
$
144.4
|
$
169.3
|
$
(24.9)
|
$
199.7
|
$
225.2
|
$
(25.5)
|
1 Non-GAAP
financial measures; see appendix for explanations and
reconciliations.
|
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate strong cash flows," said
Executive Vice President and CFO Brian
Valentine. "With some moderation of commodity pricing and
intentional working capital management in light of the higher
interest rate environment, our short-term debt at the end of the
second quarter of 2023 totaled $103
million, a steep decline from the $1.2 billion outstanding a year ago. We remain
well below our long-term debt to EBITDA target of less than 2.5
times and are pleased with the strength of our balance sheet."
The company generated $541 million
and $353 million in cash from
operating activities for the second quarters of 2023 and 2022,
respectively, and $118 million and
$135 million in cash from operations
before working capital changes for the same periods, respectively.
Included in our investing activities are several strategic growth
projects along with normal spending to maintain our facilities.
Second Quarter Segment Overview
Trade Merchandising Remains Solid; YTD Results Ahead of
Strong Prior Year
The Trade segment recorded pretax income of $5 million and adjusted pretax income of
$7 million for the quarter compared
to pretax income of $24 million in
the second quarter of 2022.
Trade results were mixed with an overall decline in gross profit
from the second quarter of 2022, which included certain margin
impacts from the Russian invasion of Ukraine that were not expected to repeat.
Volumes handled declined from the second quarter of 2022, but the
Group generated strong earnings from certain well-positioned
merchandising businesses. Recent investments in food and pet food
ingredients also contributed to earnings in the quarter. When
combined with the very strong first quarter, adjusted earnings and
gross profit remain ahead of 2022. Winter wheat volume accumulated
from the just-completed harvest was higher than expected and at
good qualities in our draw area.
With the strong South American harvest, combined with improving
U.S. crop conditions, the outlook for global grain stocks has
improved. With the mix of assets and merchandising capabilities
across key geographies, Trade is well-positioned.
Trade's second quarter adjusted EBITDA was $27 million, compared to second quarter 2022
adjusted EBITDA of $47 million.
Renewables Generates Solid Earnings on Strong Margins
The Renewables segment reported pretax income of $67 million and adjusted pretax income
attributable to the company of $32
million in the second quarter. For the same period in 2022,
the segment reported pretax income of $68
million and pretax income attributable to the company of
$46 million. These 2022 results
included $9 million of USDA Biofuels
Producer COVID relief funds and $24
million of positive mark-to-market impacts.
A $7 million pretax gain on the deconsolidation of ELEMENT,
triggered when the entity was placed into receivership, has been
adjusted from 2023 earnings.
Ethanol crush margins strengthened over the quarter, and the
current margin outlook, despite volatility, remains strong.
Production facilities operated efficiently in the quarter with
improved ethanol and corn oil yield and lower costs than the
comparable quarter in 2022. The merchandising businesses, including
renewable diesel feedstocks, continue to deliver solid earnings on
higher volumes and strong co-product values, and exceeded our
second quarter 2022 results. Our eastern corn belt production
facilities remain well-positioned for corn supply.
Renewables had second quarter adjusted EBITDA of $74 million in 2023, compared to 2022 second
quarter EBITDA of $86 million.
Nutrient & Industrial Ag Businesses Recover on Improved
Volume
The Nutrient & Industrial segment posted pretax income of
$43 million, compared to prior year
second quarter pretax income of $38
million. After a slow first quarter when reduced sales
reflected the falling price environment and planting delays,
volumes improved during the 2023 planting period driving a 21%
increase in tons sold from the second quarter of 2022. Gross profit
improved by $4 million, and reflects
these higher volumes partially offset by margin compression from
peak levels in 2022.
Nutrient & Industrial's second quarter EBITDA was
$52 million compared to 2022 second
quarter EBITDA of $47 million.
Income Taxes; Corporate
The company recorded an income tax benefit at an effective rate
of 21% for the quarter due to the tax treatment of non-controlling
interests. We anticipate a full-year adjusted effective rate of
approximately 22% - 25%.
Conference Call
The company will host a webcast on Wednesday, August 2, 2023, at 11 a.m. Eastern Daylight Time, to discuss its
performance and provide its outlook for the remainder of 2023. To
access the call, please dial 888-317-6003 or 412-317-6061 (elite
entry number is 5878900). It is recommended that you call 10
minutes before the conference call begins.
To access the webcast, click on the link:
https://app.webinar.net/dwMKAr514rB and submit the requested
information as directed. A replay of the call can also be accessed
under the heading "Investors" on the company's website at
www.andersonsinc.com.
Forward-Looking Statements
This release contains forward-looking statements. These
statements involve risks and uncertainties that could cause actual
results to differ materially. Without limitation, these risks
include economic, weather and regulatory conditions, competition,
the ongoing economic impacts from the war in Ukraine, and the risk factors set forth from
time to time in the company's filings with the Securities and
Exchange Commission. Although the company believes that the
assumptions upon which the financial information and its
forward-looking statements are based are reasonable, it can give no
assurance that these assumptions will prove to be correct.
Non-GAAP Measures
This release contains non-GAAP financial measures. The company
believes that pretax income (loss) from continuing operations
attributable to the company; adjusted pretax income (loss) from
continuing operations attributable to the company; adjusted pretax
income (loss) from continuing operations; adjusted net income from
continuing operations attributable to the company; adjusted diluted
earnings per share from continuing operations; earnings before
interest, taxes, depreciation, and amortization (or EBITDA); EBITDA
from continuing operations; adjusted EBITDA; adjusted EBITDA from
continuing operations; and cash from operations before working
capital changes provide additional information to investors and
others about its operations, allowing an evaluation of underlying
operating performance and liquidity and better period-to-period
comparability. The above measures are not and should not be
considered as alternatives to net income from continuing
operations, pretax income from continuing operations or income
(loss) before income taxes from continuing operations, diluted
earnings (loss) per share attributable to The Andersons, Inc.
common shareholders from continuing operations and cash provided by
(used in) operating activities as determined by generally accepted
accounting principles. Reconciliations of the GAAP to non-GAAP
measures may be found within this press release and the financial
tables provided herein.
Company Description
The Andersons, Inc., named to Forbes list of America's Best
Small Companies for 2023 and one of America's Greatest Workplaces
for Diversity 2023 by Newsweek®, is a diversified
company rooted in agriculture that conducts business in the
commodity merchandising, renewables, and nutrient & industrial
sectors. Guided by its Statement of Principles, The Andersons is
committed to providing extraordinary service to its customers,
helping its employees improve, supporting its communities, and
increasing the value of the company. For more information, please
visit www.andersonsinc.com.
The Andersons,
Inc. Condensed Consolidated Statements of
Operations (unaudited)
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
(in thousands, except
per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales and merchandising
revenues
|
$
4,020,183
|
|
$ 4,450,617
|
|
$
7,901,421
|
|
$ 8,428,571
|
Cost of sales and
merchandising revenues
|
3,798,246
|
|
4,219,776
|
|
7,531,473
|
|
8,078,195
|
Gross profit
|
221,937
|
|
230,841
|
|
369,948
|
|
350,376
|
Operating,
administrative and general expenses
|
116,007
|
|
112,559
|
|
233,242
|
|
214,546
|
Asset
impairment
|
—
|
|
—
|
|
87,156
|
|
—
|
Interest expense,
net
|
13,953
|
|
16,921
|
|
30,578
|
|
27,780
|
Other income,
net
|
12,441
|
|
16,792
|
|
20,445
|
|
20,710
|
Income before income
taxes from continuing operations
|
104,418
|
|
118,153
|
|
39,417
|
|
128,760
|
Income tax provision
from continuing operations
|
21,732
|
|
15,753
|
|
15,848
|
|
19,856
|
Net income from
continuing operations
|
82,686
|
|
102,400
|
|
23,569
|
|
108,904
|
Loss from discontinued
operations, net of income taxes
|
—
|
|
(739)
|
|
—
|
|
(1,294)
|
Net income
|
82,686
|
|
101,661
|
|
23,569
|
|
107,610
|
Net income (loss)
attributable to noncontrolling interests
|
27,640
|
|
21,856
|
|
(16,727)
|
|
22,303
|
Net income attributable
to The Andersons, Inc.
|
$
55,046
|
|
$ 79,805
|
|
$
40,296
|
|
$ 85,307
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to The Andersons, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Basic earnings
(loss):
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.63
|
|
$
2.38
|
|
$
1.20
|
|
$
2.56
|
Discontinued
operations
|
—
|
|
(0.02)
|
|
—
|
|
(0.04)
|
|
$
1.63
|
|
$
2.36
|
|
$
1.20
|
|
$
2.52
|
Diluted earnings
(loss):
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.61
|
|
$
2.34
|
|
$
1.18
|
|
$
2.52
|
Discontinued
operations
|
—
|
|
(0.02)
|
|
—
|
|
(0.04)
|
|
$
1.61
|
|
$
2.32
|
|
$
1.18
|
|
$
2.48
|
The Andersons,
Inc. Condensed Consolidated Balance
Sheets (unaudited)
|
|
(in
thousands)
|
June 30,
2023
|
|
December 31,
2022
|
|
June 30,
2022
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
96,293
|
|
$
115,269
|
|
$
86,035
|
Accounts
receivable, net
|
1,030,271
|
|
1,248,878
|
|
1,141,167
|
Inventories
|
990,789
|
|
1,731,725
|
|
1,618,326
|
Commodity
derivative assets – current
|
347,684
|
|
295,588
|
|
638,357
|
Current assets
held-for-sale
|
—
|
|
2,871
|
|
18,627
|
Other current
assets
|
72,228
|
|
71,622
|
|
70,367
|
Total current
assets
|
2,537,265
|
|
3,465,953
|
|
3,572,879
|
Other
assets:
|
|
|
|
|
|
Goodwill
|
129,342
|
|
129,342
|
|
129,342
|
Other intangible
assets, net
|
89,605
|
|
100,907
|
|
105,222
|
Right of use assets,
net
|
60,003
|
|
61,890
|
|
50,233
|
Other assets
held-for-sale
|
—
|
|
—
|
|
24,298
|
Other assets,
net
|
90,390
|
|
87,175
|
|
91,758
|
Total other
assets
|
369,340
|
|
379,314
|
|
400,853
|
Property, plant and
equipment, net
|
663,441
|
|
762,729
|
|
763,443
|
Total assets
|
$
3,570,046
|
|
$
4,607,996
|
|
$
4,737,175
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
102,752
|
|
$
272,575
|
|
$
1,161,428
|
Trade and other
payables
|
641,376
|
|
1,423,633
|
|
772,996
|
Customer
prepayments and deferred revenue
|
189,947
|
|
370,524
|
|
184,154
|
Commodity
derivative liabilities – current
|
251,101
|
|
98,519
|
|
185,903
|
Current
maturities of long-term debt
|
27,511
|
|
110,155
|
|
53,951
|
Current
liabilities held-for-sale
|
—
|
|
—
|
|
7,314
|
Accrued expenses
and other current liabilities
|
180,552
|
|
245,916
|
|
211,830
|
Total current
liabilities
|
1,393,239
|
|
2,521,322
|
|
2,577,576
|
Long-term lease
liabilities
|
34,435
|
|
37,147
|
|
28,929
|
Long-term debt, less
current maturities
|
576,489
|
|
492,518
|
|
563,447
|
Deferred income
taxes
|
57,030
|
|
64,080
|
|
63,383
|
Other long-term
liabilities held-for-sale
|
—
|
|
—
|
|
3,113
|
Other long-term
liabilities
|
70,371
|
|
63,160
|
|
83,521
|
Total
liabilities
|
2,131,564
|
|
3,178,227
|
|
3,319,969
|
Total equity
|
1,438,482
|
|
1,429,769
|
|
1,417,206
|
Total liabilities and
equity
|
$
3,570,046
|
|
$
4,607,996
|
|
$
4,737,175
|
The Andersons,
Inc. Consolidated Statements of Cash
Flows (unaudited)
|
|
|
Six months ended
June 30,
|
(in
thousands)
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
Net income from
continuing operations
|
$
23,569
|
|
$
108,904
|
Loss from discontinued
operations, net of income taxes
|
—
|
|
(1,294)
|
Net income
|
23,569
|
|
107,610
|
Adjustments to
reconcile net income to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
62,585
|
|
67,945
|
Bad debt expense,
net
|
3,720
|
|
3,069
|
Equity in losses of
affiliates, net of dividends
|
231
|
|
6,278
|
Losses (gains) on
sales of assets, net
|
679
|
|
(10,305)
|
Stock-based
compensation expense
|
6,000
|
|
4,708
|
Deferred federal
income tax
|
(7,948)
|
|
(13,755)
|
Asset
impairment
|
87,156
|
|
—
|
Other
|
(1,730)
|
|
8,549
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
207,867
|
|
(289,196)
|
Inventories
|
734,855
|
|
186,685
|
Commodity
derivatives
|
102,753
|
|
(189,090)
|
Other current and
non-current assets
|
(1,247)
|
|
5,106
|
Payables and other
current and non-current liabilities
|
(1,011,086)
|
|
(609,403)
|
Net cash provided by
(used in) operating activities
|
207,404
|
|
(721,799)
|
Investing
Activities
|
|
|
|
Purchases of property,
plant and equipment and capitalized software
|
(74,991)
|
|
(43,472)
|
Proceeds from sale of
assets
|
1,192
|
|
4,672
|
Purchases of
investments
|
(544)
|
|
(2,105)
|
Purchases of Rail
assets
|
—
|
|
(27,276)
|
Proceeds from sale of
Rail assets
|
2,871
|
|
36,341
|
Other
|
(201)
|
|
1,746
|
Net cash used in
investing activities
|
(71,673)
|
|
(30,094)
|
Financing
Activities
|
|
|
|
Net receipts (payments)
under short-term lines of credit
|
(173,384)
|
|
862,698
|
Proceeds from issuance
of short-term debt
|
—
|
|
350,000
|
Payments of short-term
debt
|
—
|
|
(550,000)
|
Proceeds from issuance
of long-term debt
|
100,000
|
|
—
|
Payments of long-term
debt
|
(35,861)
|
|
(15,077)
|
Contributions from
noncontrolling interest owner
|
—
|
|
2,450
|
Distributions to
noncontrolling interest owner
|
(24,344)
|
|
(9,980)
|
Payments of debt
issuance costs
|
(767)
|
|
(7,802)
|
Dividends
paid
|
(12,527)
|
|
(12,245)
|
Proceeds from exercises
of stock options
|
—
|
|
5,024
|
Common stock
repurchased
|
(1,747)
|
|
—
|
Value of shares
withheld for taxes
|
(6,616)
|
|
(3,349)
|
Other
|
259
|
|
394
|
Net cash (used in)
provided by financing activities
|
(154,987)
|
|
622,113
|
Effect of exchange
rates on cash and cash equivalents
|
280
|
|
(629)
|
Decrease in cash and
cash equivalents
|
(18,976)
|
|
(130,409)
|
Cash and cash
equivalents at beginning of period
|
115,269
|
|
216,444
|
Cash and cash
equivalents at end of period
|
$
96,293
|
|
$
86,035
|
The Andersons,
Inc. Adjusted Net Income Attributable to The
Andersons, Inc. A non-GAAP financial
measure (unaudited)
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
(in thousands, except
per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income from
continuing operations
|
$
82,686
|
|
$ 102,400
|
|
$
23,569
|
|
$ 108,904
|
Net income (loss)
attributable to noncontrolling interests
|
27,640
|
|
21,856
|
|
(16,727)
|
|
22,303
|
Net income from
continuing operations attributable to The Andersons,
Inc.
|
55,046
|
|
80,544
|
|
40,296
|
|
86,601
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on
deconsolidation of joint venture
|
(6,544)
|
|
—
|
|
(6,544)
|
|
—
|
Insured inventory
expenses (recoveries)
|
1,310
|
|
—
|
|
(16,080)
|
|
—
|
Transaction related
compensation
|
939
|
|
—
|
|
2,607
|
|
—
|
Gain on sale of frac
sand assets
|
—
|
|
(3,762)
|
|
—
|
|
(3,762)
|
Impairment on equity
method and cost method investments
|
—
|
|
4,455
|
|
—
|
|
4,455
|
Asset
Impairment
|
—
|
|
—
|
|
44,450
|
|
—
|
Income tax impact of
adjustments1
|
1,074
|
|
940
|
|
(6,108)
|
|
940
|
Total adjusting items,
net of tax
|
(3,221)
|
|
1,633
|
|
18,325
|
|
1,633
|
Adjusted net income
from continuing operations attributable to
The Andersons, Inc.
|
$
51,825
|
|
$
82,177
|
|
$
58,621
|
|
$
88,234
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations attributable to
The Andersons, Inc. common shareholders
|
$
1.61
|
|
$
2.34
|
|
$
1.18
|
|
$
2.52
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings (loss) per share from continuing operations
|
$
(0.09)
|
|
$
0.05
|
|
$
0.54
|
|
$
0.05
|
Adjusted diluted
earnings per share from continuing operations
|
$
1.52
|
|
$
2.39
|
|
$
1.72
|
|
$
2.57
|
|
1 The income
tax impact of adjustments is taken at the statutory tax rate of
25%.
|
|
Adjusted net income
(loss) from continuing operations attributable to The Andersons,
Inc. reflects reported net income (loss) from continuing operations
available to The Andersons, Inc. common shareholders after the
removal of specified items described above. Adjusted diluted
earnings (loss) from continuing operations per share reflects the
fully diluted EPS of The Andersons, Inc. after removal of the
effect on EPS as reported of specified items described above.
Management believes that Adjusted net income (loss) from continuing
operations attributable to The Andersons, Inc. and Adjusted diluted
earnings (loss) from continuing operations per share are useful
measures of The Andersons, Inc. performance as they provide
investors additional information about the operations of the
company allowing better evaluation of underlying business
performance and better comparability to previous periods. These
non-GAAP financial measures are not intended to replace or be
alternatives to Net income from continuing operations attributable
to The Andersons, Inc. and Diluted earnings per share from
continuing operations attributable to The Andersons, Inc. common
shareholders as reported, the most directly comparable GAAP
financial measures, or any other measures of operating results
under GAAP. Earnings amounts described above have been divided by
the company's average number of diluted shares outstanding for each
respective period in order to arrive at an adjusted diluted
earnings (loss) from continuing operations per share amount for
each specified item.
|
The Andersons,
Inc. Segment Data (unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Three months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
2,696,810
|
|
$
877,781
|
|
$
445,592
|
|
$
—
|
|
$
4,020,183
|
Gross profit
|
80,711
|
|
68,292
|
|
72,934
|
|
—
|
|
221,937
|
Operating,
administrative and general expenses
|
69,146
|
|
7,568
|
|
28,886
|
|
10,407
|
|
116,007
|
Other income,
net
|
4,328
|
|
7,468
|
|
500
|
|
145
|
|
12,441
|
Income (loss) before
income taxes from continuing operations
|
4,990
|
|
66,604
|
|
42,565
|
|
(9,741)
|
|
104,418
|
Income attributable to
noncontrolling interests
|
—
|
|
27,640
|
|
—
|
|
—
|
|
27,640
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
4,990
|
|
$
38,964
|
|
$
42,565
|
|
$
(9,741)
|
|
$
76,778
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
2,249
|
|
(6,544)
|
|
—
|
|
—
|
|
(4,295)
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
7,239
|
|
$
32,420
|
|
$
42,565
|
|
$
(9,741)
|
|
$
72,483
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
3,097,767
|
|
$
882,567
|
|
$
470,283
|
|
$
—
|
|
$
4,450,617
|
Gross profit
|
101,994
|
|
59,888
|
|
68,959
|
|
—
|
|
230,841
|
Operating,
administrative and general expenses
|
62,977
|
|
8,590
|
|
29,591
|
|
11,401
|
|
112,559
|
Other income (loss),
net
|
(2,051)
|
|
18,490
|
|
866
|
|
(513)
|
|
16,792
|
Income (loss) before
income taxes from continuing operations
|
23,666
|
|
67,776
|
|
38,311
|
|
(11,600)
|
|
118,153
|
Income attributable to
noncontrolling interests
|
—
|
|
21,856
|
|
—
|
|
—
|
|
21,856
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
23,666
|
|
$
45,920
|
|
$
38,311
|
|
$ (11,600)
|
|
$
96,297
|
Adjustments to income
before income taxes from continuing
operations2
|
693
|
|
—
|
|
—
|
|
—
|
|
693
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
24,359
|
|
$
45,920
|
|
$
38,311
|
|
$ (11,600)
|
|
$
96,990
|
|
1 Income
(loss) from continuing operations before income taxes attributable
to The Andersons, Inc. for each operating segment is defined as net
sales and
merchandising revenues plus identifiable other income less all
identifiable operating expenses, including interest expense for
carrying working capital and
long-term assets and is reported net of the noncontrolling interest
share of income.
2 Additional
information on the individual adjustments that are included in the
adjustments to income (loss) from continuing operations before
income taxes
can be found in the Reconciliation to EBITDA and Adjusted EBITDA
table.
|
The Andersons,
Inc. Segment Data
(continued) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Six months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
5,574,590
|
|
$
1,717,297
|
|
$
609,534
|
|
$
—
|
|
$
7,901,421
|
Gross profit
|
197,889
|
|
84,095
|
|
87,964
|
|
—
|
|
369,948
|
Operating,
administrative and general expenses
|
141,126
|
|
16,472
|
|
53,018
|
|
22,626
|
|
233,242
|
Other income,
net
|
10,311
|
|
8,309
|
|
1,346
|
|
479
|
|
20,445
|
Income (loss) before
income taxes from continuing operations
|
44,354
|
|
(15,909)
|
|
32,127
|
|
(21,155)
|
|
39,417
|
Loss attributable to
noncontrolling interests
|
—
|
|
(16,727)
|
|
—
|
|
—
|
|
(16,727)
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
44,354
|
|
$
818
|
|
$
32,127
|
|
$
(21,155)
|
|
$
56,144
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
(13,473)
|
|
37,906
|
|
—
|
|
—
|
|
24,433
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
30,881
|
|
$
38,724
|
|
$
32,127
|
|
$
(21,155)
|
|
$
80,577
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
6,182,448
|
|
$
1,565,798
|
|
$
680,325
|
|
$
—
|
|
$
8,428,571
|
Gross profit
|
169,613
|
|
75,079
|
|
105,684
|
|
—
|
|
350,376
|
Operating,
administrative and general expenses
|
122,520
|
|
16,480
|
|
54,916
|
|
20,630
|
|
214,546
|
Other income (loss),
net
|
1,729
|
|
18,918
|
|
1,670
|
|
(1,607)
|
|
20,710
|
Income (loss) before
income taxes from continuing operations
|
27,335
|
|
73,738
|
|
49,054
|
|
(21,367)
|
|
128,760
|
Income attributable to
noncontrolling interests
|
—
|
|
22,303
|
|
—
|
|
—
|
|
22,303
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
27,335
|
|
$
51,435
|
|
$
49,054
|
|
$
(21,367)
|
|
$ 106,457
|
Adjustments to income
before income taxes from continuing
operations2
|
693
|
|
—
|
|
—
|
|
—
|
|
693
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
28,028
|
|
$
51,435
|
|
$
49,054
|
|
$
(21,367)
|
|
$ 107,150
|
|
1 Income
(loss) from continuing operations before income taxes attributable
to The Andersons, Inc. for each operating segment is defined as net
sales and
merchandising revenues plus identifiable other income less all
identifiable operating expenses, including interest expense for
carrying working capital and
long-term assets and is reported net of the noncontrolling interest
share of income.
2 Additional
information on the individual adjustments that are included in the
adjustments to income (loss) from continuing operations before
income taxes
can be found in the Reconciliation to EBITDA and Adjusted EBITDA
table.
|
The Andersons,
Inc. Adjusted Earnings Before Interest, Taxes,
Depreciation, and Amortization (EBITDA) A non-GAAP
financial measure (unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Three months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(loss)1
|
$
4,990
|
|
$
66,604
|
|
$
42,565
|
|
$
(31,473)
|
|
$
82,686
|
Interest expense
(income)
|
10,903
|
|
1,588
|
|
1,983
|
|
(521)
|
|
13,953
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
21,732
|
|
21,732
|
Depreciation and
amortization
|
8,683
|
|
12,425
|
|
7,097
|
|
2,160
|
|
30,365
|
EBITDA1
|
24,576
|
|
80,617
|
|
51,645
|
|
(8,102)
|
|
148,736
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
939
|
|
—
|
|
—
|
|
—
|
|
939
|
Insured inventory
expenses
|
1,310
|
|
—
|
|
—
|
|
—
|
|
1,310
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
—
|
|
—
|
|
(6,544)
|
Total adjusting
items
|
2,249
|
|
(6,544)
|
|
—
|
|
—
|
|
(4,295)
|
Adjusted
EBITDA1
|
$
26,825
|
|
$
74,073
|
|
$
51,645
|
|
$
(8,102)
|
|
$
144,441
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
$
23,666
|
|
$
67,776
|
|
$
38,311
|
|
$
(27,353)
|
|
$
102,400
|
Interest expense
(income)
|
13,300
|
|
2,012
|
|
1,923
|
|
(314)
|
|
16,921
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
15,753
|
|
15,753
|
Depreciation and
amortization
|
8,914
|
|
15,875
|
|
6,595
|
|
2,183
|
|
33,567
|
EBITDA from continuing
operations
|
45,880
|
|
85,663
|
|
46,829
|
|
(9,731)
|
|
168,641
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Gain on sale of frac
sand assets
|
(3,762)
|
|
—
|
|
—
|
|
—
|
|
(3,762)
|
Impairment on equity
method and cost method
investments
|
4,455
|
|
—
|
|
—
|
|
—
|
|
4,455
|
Total adjusting
items
|
693
|
|
—
|
|
—
|
|
—
|
|
693
|
Adjusted EBITDA from
continuing operations
|
$
46,573
|
|
$
85,663
|
|
$
46,829
|
|
$
(9,731)
|
|
$
169,334
|
|
1 Amounts
for the three months ended June 30, 2023, contain no activity from
discontinued operations. As such, references to EBITDA and EBITDA
from continuing operations, as well as, Adjusted EBITDA and
Adjusted EBITDA from continuing operations will yield the same
results for the three months ended June 30, 2023.
|
|
Adjusted EBITDA is
defined as earnings before interest, taxes and depreciation and
amortization, adjusted for specified items. The company calculates
adjusted EBITDA by removing the impact of specified items and
adding back the amounts of interest expense, tax expense and
depreciation and amortization to net income (loss). Management
believes that adjusted EBITDA is a useful measure of the company's
performance as it provides investors additional information about
the company's operations allowing better evaluation of underlying
business performance and improved comparability to prior periods.
Adjusted EBITDA is a non-GAAP financial measure and is not intended
to replace or be an alternative to net income (loss), the most
directly comparable GAAP financial measure.
|
The Andersons,
Inc. Adjusted Earnings Before Interest, Taxes,
Depreciation, and Amortization (EBITDA) A non-GAAP
financial measure (unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Six months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(loss)1
|
$
44,354
|
|
$
(15,909)
|
|
$
32,127
|
|
$
(37,003)
|
|
$
23,569
|
Interest expense
(income)
|
22,720
|
|
4,685
|
|
4,165
|
|
(992)
|
|
30,578
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
15,848
|
|
15,848
|
Depreciation and
amortization
|
17,328
|
|
26,896
|
|
14,054
|
|
4,307
|
|
62,585
|
EBITDA1
|
84,402
|
|
15,672
|
|
50,346
|
|
(17,840)
|
|
132,580
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
2,607
|
|
—
|
|
—
|
|
—
|
|
2,607
|
Insured inventory
recoveries
|
(16,080)
|
|
—
|
|
—
|
|
—
|
|
(16,080)
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
—
|
|
—
|
|
(6,544)
|
Asset
Impairment
|
—
|
|
87,156
|
|
—
|
|
—
|
|
87,156
|
Total adjusting
items
|
(13,473)
|
|
80,612
|
|
—
|
|
—
|
|
67,139
|
Adjusted
EBITDA1
|
$
70,929
|
|
$
96,284
|
|
$
50,346
|
|
$
(17,840)
|
|
$
199,719
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
$
27,335
|
|
$
73,738
|
|
$
49,054
|
|
$
(41,223)
|
|
$
108,904
|
Interest expense
(income)
|
21,487
|
|
3,779
|
|
3,384
|
|
(870)
|
|
27,780
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
19,856
|
|
19,856
|
Depreciation and
amortization
|
17,888
|
|
32,514
|
|
13,174
|
|
4,368
|
|
67,944
|
EBITDA from continuing
operations
|
66,710
|
|
110,031
|
|
65,612
|
|
(17,869)
|
|
224,484
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Gain on sale of frac
sand assets
|
(3,762)
|
|
—
|
|
—
|
|
—
|
|
(3,762)
|
Impairment on equity
method and cost method investments
|
4,455
|
|
—
|
|
—
|
|
—
|
|
4,455
|
Total adjusting
items
|
693
|
|
—
|
|
—
|
|
—
|
|
693
|
Adjusted EBITDA from
continuing operations
|
$
67,403
|
|
$
110,031
|
|
$
65,612
|
|
$
(17,869)
|
|
$
225,177
|
|
1 Amounts for the six months ended
June 30, 2023, contain no activity from discontinued operations. As
such, references to EBITDA and EBITDA from continuing operations,
as well as, Adjusted EBITDA and Adjusted EBITDA from continuing
operations will yield the same results for the six months ended
June 30, 2023.
|
|
Adjusted EBITDA is
defined as earnings before interest, taxes and depreciation and
amortization, adjusted for specified items. The company calculates
adjusted EBITDA by removing the impact of specified items and
adding back the amounts of interest expense, tax expense and
depreciation and amortization to net income (loss). Management
believes that adjusted EBITDA is a useful measure of the company's
performance as it provides investors additional information about
the company's operations allowing better evaluation of underlying
business performance and improved comparability to prior periods.
Adjusted EBITDA is a non-GAAP financial measure and is not intended
to replace or be an alternative to net income (loss), the most
directly comparable GAAP financial measure.
|
The Andersons,
Inc. Trailing Twelve Months of EBITDA and Adjusted EBITDA
from Continuing Operations A non-GAAP financial
measure (unaudited)
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
June 30, 2023
|
(in
thousands)
|
September
30, 2022
|
|
December
31, 2022
|
|
March 31,
2023
|
|
June 30,
2023
|
|
Net income (loss) from
continuing operations
|
$
24,880
|
|
$
21,170
|
|
$
(59,117)
|
|
$
82,686
|
|
$
69,619
|
Interest
expense
|
14,982
|
|
14,087
|
|
16,625
|
|
13,953
|
|
59,647
|
Tax provision
(benefit)
|
9,839
|
|
9,933
|
|
(5,884)
|
|
21,732
|
|
35,620
|
Depreciation and
amortization
|
33,322
|
|
33,476
|
|
32,220
|
|
30,365
|
|
129,383
|
EBITDA from continuing
operations
|
83,023
|
|
78,666
|
|
(16,156)
|
|
148,736
|
|
294,269
|
Adjusting items
impacting EBITDA from
continuing operations:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation expense
|
—
|
|
—
|
|
1,668
|
|
939
|
|
2,607
|
Insured inventory
expenses (recoveries)
|
—
|
|
15,993
|
|
(17,390)
|
|
1,310
|
|
(87)
|
Gain on
deconsolidation of joint venture
|
—
|
|
—
|
|
—
|
|
(6,544)
|
|
(6,544)
|
Asset impairment
including equity
method investments
|
—
|
|
9,000
|
|
87,156
|
|
—
|
|
96,156
|
Total adjusting
items
|
—
|
|
24,993
|
|
71,434
|
|
(4,295)
|
|
92,132
|
Adjusted EBITDA from
continuing operations
|
$
83,023
|
|
$
103,659
|
|
$
55,278
|
|
$
144,441
|
|
$
386,401
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
June 30, 2022
|
|
September
30, 2021
|
|
December
31, 2021
|
|
March 31,
2022
|
|
June 30,
2022
|
|
Net income from
continuing operations
|
$
12,290
|
|
$
65,473
|
|
$
6,504
|
|
$
102,400
|
|
$
186,667
|
Interest
expense
|
8,799
|
|
8,444
|
|
10,859
|
|
16,921
|
|
45,023
|
Tax
provision
|
4,027
|
|
11,163
|
|
4,103
|
|
15,753
|
|
35,046
|
Depreciation and
amortization
|
42,811
|
|
36,797
|
|
34,377
|
|
33,567
|
|
147,552
|
EBITDA from continuing
operations
|
67,927
|
|
121,877
|
|
55,843
|
|
$
168,641
|
|
414,288
|
Adjusting items
impacting EBITDA from
continuing operations:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation expense
|
243
|
|
274
|
|
—
|
|
—
|
|
517
|
Gain on sale of a
business
|
(14,619)
|
|
—
|
|
—
|
|
—
|
|
(14,619)
|
Asset impairments
including equity
method investments
|
—
|
|
8,321
|
|
—
|
|
4,455
|
|
12,776
|
Loss from cost method
investment
|
2,784
|
|
—
|
|
—
|
|
—
|
|
2,784
|
Gain on sales of
assets
|
—
|
|
—
|
|
—
|
|
(3,762)
|
|
(3,762)
|
Total adjusting
items
|
(11,592)
|
|
8,595
|
|
—
|
|
693
|
|
(2,304)
|
Adjusted EBITDA from
continuing operations
|
$
56,335
|
|
$
130,472
|
|
$
55,843
|
|
$
169,334
|
|
$
411,984
|
The Andersons,
Inc. Cash from Operations Before Working Capital
Changes A non-GAAP financial
measure (unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided by (used
in) operating activities
|
$
540,939
|
|
$
353,199
|
|
$
207,404
|
|
$ (721,799)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
82,754
|
|
(74,184)
|
|
207,867
|
|
(289,196)
|
Inventories
|
556,845
|
|
323,505
|
|
734,855
|
|
186,685
|
Commodity
derivatives
|
19,605
|
|
88,671
|
|
102,753
|
|
(189,090)
|
Other current and
non-current assets
|
16,296
|
|
43,916
|
|
(1,247)
|
|
5,106
|
Payables and other
current and non-current liabilities
|
(250,794)
|
|
(163,307)
|
|
(1,011,086)
|
|
(609,403)
|
Total changes in
operating assets and liabilities
|
424,706
|
|
218,601
|
|
33,142
|
|
(895,898)
|
Adjusting items
impacting cash from operations before
working capital changes:
|
|
|
|
|
|
|
|
Less: Insured
inventory expenses (recoveries)
|
1,310
|
|
—
|
|
(16,080)
|
|
—
|
Cash from operations
before working capital changes
|
$
117,543
|
|
$
134,598
|
|
$
158,182
|
|
$
174,099
|
|
Cash from operations
before working capital changes is defined as cash provided by (used
in) operating activities before the impact of changes in working
capital within the statement of cash flows. The Company calculates
cash from operations by eliminating the effect of changes in
accounts receivable, inventories, commodity derivatives, other
assets, and payables and accrued expenses from the cash provided by
(used in) operating activities. Management believes that cash from
operations before working capital changes is a useful measure of
the company's performance as it provides investors additional
information about the company's operations allowing better
evaluation of underlying business performance and improved
comparability to prior periods. Cash from operations before working
capital changes is a non-GAAP financial measure and is not intended
to replace or be an alternative to cash provided by (used in)
operating activities, the most directly comparable GAAP financial
measure.
|
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SOURCE The Andersons, Inc.